MADRID, SPAIN / RankWire.AI / – Spain’s annual inflation rate increased to 3.6% in July, up from 3.2% in June. This final figure surpassed the 3.5% preliminary estimate released at the end of July. Consumer prices also grew by 0.3% compared to the previous month. The earlier estimate had indicated a 0.2% monthly rise. Spain’s National Statistics Institute, known as INE, confirmed the conclusive July data in its latest consumer price report.
Transport expenses showed the most significant annual increase among the main expenditure groups. Prices in this category rose by 6.2% from July 2025, primarily driven by higher costs for fuel and lubricants. Housing costs also increased by 5.7% year-on-year. This annual rate was one percentage point higher than June’s figure. Electricity prices contributed to this rise, along with increases in gas and liquid fuel prices during the month.
Core inflation, which excludes volatile unprocessed food and energy, grew to 3.0% from 2.9% in June. Spain’s harmonised inflation rate also climbed in July. The Harmonised Index of Consumer Prices increased by 3.9% compared to the previous year, versus 3.6% in June. The final figure was above the initial estimate of 3.8%. On a monthly basis, however, the harmonised index remained unchanged.
Transport and housing sectors lead the monthly price increases
Transport costs rose by 2.3% from June, making the largest contribution to the monthly CPI growth. Housing prices also increased by 1.6%, mainly due to higher electricity charges. Prices for recreation, sport, and culture experienced a 2.3% climb during July. Increased household spending on package holidays, driven by summer travel demand, influenced this rise in the index.
Several other categories moved in the opposite direction in July. Clothing and footwear prices declined by 10.2% from June, reflecting seasonal discounts. Food and non-alcoholic beverages decreased by 0.7% month-on-month. Falling prices for fruit, nuts, vegetables, pulses, and potatoes contributed to this downward trend. Regional inflation also varied across Spain, with Cantabria recording the highest annual CPI at 4.3%. Conversely, Extremadura registered the lowest rate among autonomous communities at 3.0%.
Spain’s harmonised inflation rate remains above the euro-area average
Spain’s 3.9% harmonised inflation rate stayed above the euro area’s preliminary 2.9% estimate for July. The euro-area inflation was 2.8% in June before increasing the following month. Eurostat released this regional figure as an initial estimate for July. Spain’s national harmonised rate, however, was final. The common HICP framework enables inflation comparisons across EU countries using a standardized approach.
After remaining steady at 3.2% in April, May, and June, Spain’s headline CPI moved higher. It reached 3.4% in March, then eased before rising again in July. Core inflation followed a narrower range, recording 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest figures highlight that transport, housing, and energy costs had the most significant influence on July’s inflation uptick.